Ronald L. Nelson is Chairman and Chief Executive Officer of Avis Budget Group, Inc., a leading global provider of car rental services, operating under the Avis and Budget brands with 10,000 locations in approximately 175 countries worldwide. Prior to his time at Avis Budget, Mr. Nelson served as President, Chief Financial Officer and Director of Cendant Corporation, where he was primarily responsible for strategic and financial planning, financial management, financial reporting and accounting, internal audit, tax, investor relations and corporate communications, as well as administrative functions serving Cendant’s business units. Cendant was the parent company of Avis Budget, which was spun off as an independent public company. Prior to joining Cendant Corporation, he served as a Managing Director of DreamWorks SKG since its inception in 1994, where he helped raise $5 billion in capital to launch the company and establish its operational infrastructure and strategy. Mr. Nelson also served as Vice President, Chief Financial Officer and Director of Paramount Communications, Inc., formerly Gulf & Western Industries, Inc., where he was responsible for all finance functions, including mergers and acquisitions and corporate strategy.
1. You came to AVIS from another sector. How do you perceive this change?
RLN: I am fortunate to have a broad range of entrepreneurial and Fortune 500 experience, from being part of building multi-billion dollar businesses at DreamWorks and Paramount to disrupting them at Cendant. There is no substitute for experience in the skills that are required when you lead an organization. I feel that this diverse experience has prepared me well for the challenges we have faced at Avis Budget Group over the years.
2. What is it like to manage a colossus like Avis Budget Group?
RLN: It may seem modest when you think that the decisions you make can affect the lives of so many people around the world, but you can't let that distract you from doing what's right for all stakeholders.
3. What do you like most about your job?
RLN: Daily interaction with such a diverse, talented, and hard-working group of people from all over the world who do such amazing things every day for the benefit of our customers and shareholders.
4. What does your workday look like?
RLN: Lots of meetings, phone conversations with investors, analyzing financial reports, communicating with banks... Very interesting things.
5. What changes do you expect in the car rental sector in the next 5 years?
RLN: Carpooling will continue to grow globally because it is a good solution for many people who are not already using it as a transportation option. This will also bring a number of manufacturers back into the car rental game after most of them exited the industry in recent years. We are also seeing an increase in international travel, driven by newer markets like India and China. And we will continue to see big changes in our products and services driven by advances and innovation in technology. But nothing will ever replace great customer service provided by people for customers.
6. Two years ago you merged the ownership of AVIS Europe with the parent company in the US. What was the main goal, what did you expect from it?
RLN: As an independent international company, we are better able to offer our customers a consistently superior rental experience around the world. We are better able to create consistent and differentiated brand value. We are better able to capitalize on fast-growing travel markets like China and India. And we have greater manufacturing efficiencies, which gives us greater lending power and negotiating leverage. All of this creates a much stronger platform for sustained profitable growth than the company could achieve on its own.
7. Do you think the car rental market is already consolidated or is it still undergoing changes? How will they affect the future?
RLN: I think the consolidation period for larger US brands is probably over due to regulatory constraints. In the rest of the world, I expect some consolidation to continue, mostly in the form of smaller value brands acquired by larger companies looking to expand their global footprint or diversify their brand portfolio.
8. Over the past 3 years, the company's shares have jumped 3,000 times since 2009. Do you think it can achieve even more? How?
RLN: If we can continue to drive accelerated growth in our most profitable channels, while doing everything we can to reduce the growth in fleet costs and our costs in general, I believe we will continue to have unhindered growth potential. If we continue in this direction, I expect the market to recognize that in our share price. But of course there are a number of things that can affect share prices that may be beyond our control, such as major economic downturns in various parts of the world.
9. What drives you forward, what is your biggest motivation?
RLN: Constantly improving all things… Striving and being better every day as a person, as a leader, as a husband and father.
10. Everyone has their own recipe for success, what is yours?
RLN: Treating people with respect. I believe that when you show respect, it comes back to you, and that is the foundation for accomplishing almost anything that needs to be accomplished within an organization and in life.
Vladimir Orth